Zakat on Pension

Start by identifying whether the arrangement is defined-benefit, account-based, employer-managed, personal, mandatory, or voluntary.

Record what the participant owns, can direct, can withdraw, and can value.

Restricted or contingent benefits should not be treated as ordinary available cash without examining the relevant facts.

After benefits are received, retained cash may enter the broader review of eligible wealth.

Where a methodology considers underlying investments, reliable plan information may be needed.

Keep statements, contribution details, vesting or access conditions, valuation dates, and any external guidance.

• Do not assume every pension is owned or accessible in the same way.
• Tax treatment and Zakat treatment are separate questions.